The Ministry of Finance of Cyprus announce on 08 September 2015 the conclusion of the negotiations with Ukrainian Ministry of Finance. The two Contracting States agreed to a Protocol that will amend the Convention for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect on taxes on income when it expire.
The agreed protocol when signed will come into effect not earlier than the 1st January 2019, date that the existing Convention will expire. The existing Convention has been signed on the 8th of November 2012 and entered into force on the 1st of January 2014.
During the negotiations a most favourable nation clause has been agreed, for the taxes on interest, dividends, royalties and capital gains. This clause is considered of high importance as Cyprus will be treated equitably with other jurisdictions.
The text has been agreed between the two negotiating teams of the Contracting States and will contribute to further develop the trade and economic links between Cyprus and the Government of Ukraine, as well as with other countries. Upgrading and expanding the network of Double Tax Conventions, is of high economic and political importance and aims to further strengthen and attract foreign investment in Cyprus as its standing an international business centre is elevated.